The Daily Money: Who pays for Trump's tariffs?
Good morning! It’s Daniel de Visé with your Daily Money.
While campaigning for president, Donald Trump said he would impose a 60% tariff on products from China, America’s leading foreign supplier, and tariffs as high as 20% on other U.S. imports.
But retailers say tariffs will hurt U.S. consumers.
Trump has said foreign countries would pay the tariffs, which are taxes on imported goods. However, retailers and economists say it’s American shoppers who will end up paying more.
Fed eases interest rates
The Federal Reserve lowered its key interest rate by a quarter percentage point Thursday, its second straight rate cut in response to easing inflation, a move tailored to further trim borrowing costs for millions of Americans.
But the more modest cut could foreshadow a slower pace of future rate decreases, especially after Donald Trump’s victory in the presidential election. Forecasters expect Trump’s tax, trade and immigration policies to partly reignite inflation, which has pulled back substantially since 2022.
In a statement after a two-day meeting, the Fed steered clear of any references to Trump or the election.
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📰 A great read 📰
Finally, here's a story from Betty Lin-Fisher. We offer it as our Consumer Friday read.
If you're in the market for a used car, be on the lookout for flood-damaged or water-damaged vehicles that may have been cleaned up and put up for sale to unsuspecting buyers.
As many as 347,000 vehicles have been flood-damaged this year, according to estimates by CARFAX. Hurricane Milton added as many as 120,000 vehicles in Florida, on top of 138,000 vehicles damaged by Hurricane Helene across several states. And up to 89,000 vehicles were hit with water damage from smaller storms during the summer.
The last thing you want to buy is a car that's "rotting from the inside out."
About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.